2019 had been volatile for stock indices so far. In May 2019, there was a sell-off of stocks. The stock markets recovered in June 2019 in anticipation of a good outcome of trade talk between President Trump and President Xi Jinping today (29 June).
All stock indices were all positive at halfway mark with Nasdaq gaining 20.7% followed by Shanghai Composite index gaining 19.4%. Singapore STI was up 8.2%.
|Stock Indices||31-Dec-18||28-Jun-19||YTD Change|
|S&P 500 (USA)||2,506.85||2,941.76||17.3%|
|Australia All Ordinaries||5,709.40||6,699.20||17.3%|
|CAC 40 (France)||4,730.69||5,538.97||17.1%|
|Dow Jones (USA)||23,327.46||26,599.96||14.0%|
|Hang Seng (HK)||25,845.70||28,542.62||10.4%|
|UK FTSE 100||6,728.13||7,425.63||10.4%|
|Nikkei 225 (Japan)||20,014.77||21,275.92||6.3%|
We have to bear in mind that 2018 was a particularly bad year for almost all stock indices. See table below. Shanghai Composite lost 24.6% last year. It had not recovered fully in 2019. Whereas, the three US stock indices did exceptionally well so far.
|Stock Indices||Change in 2018|
|S&P 500 (USA)||-6.7%|
|Australia All Ordinaries||-7.5%|
|CAC 40 (France)||-11.0%|
|Dow Jones (USA)||-5.6%|
|Hang Seng (HK)||-13.6%|
|UK FTSE 100||-11.8%|
|Nikkei 225 (Japan)||-12.1%|
The truce on trade tariffs between US and China today would provide some calm to the stock markets in the near term. However, I am not too excited with the stock markets till the end of this year.
Copyright © 2019, limkimtong for Living Investment
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.